EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 52

📌Weekly Logistics Highlights:

The news highlights this week include: Shanghai Port's annual container throughput exceeding 50 million TEUs, the recovery and growth of Vietnam's aviation industry amidst falling fuel prices, and T’way's plans to expand its cargo business...

Hong Kong, China

🔹Enhancing Hong Kong's Air Capacity Post-Pandemic: The Role of the Third Runway and Low-Cost Airlines

After the COVID-19 pandemic, Hong Kong's air travel capacity has not fully recovered, with current operations at about 70-80% of pre-pandemic levels. Legislators suggest that the activation of the third runway could enhance air capacity and advocate for increased use of low-cost airlines to raise their market share in Hong Kong's air freight, which currently stands at around 10%. Despite slower global economic growth, there is still significant passenger growth in the Asia-Pacific region, particularly in the Greater Bay Area.

Shenzhen, China

🔹Opening of Shenzhen Airport's Jiangmen Pre-Positioning Warehouse Enhances Logistics Efficiency for Local Businesses

The Shenzhen Airport's Jiangmen (Jianghai) pre-positioning warehouse officially opened in Jiangmen, marking a significant milestone in the Shenjiang logistics system. This 400-square-meter facility, operated by Baile International Logistics, allows for efficient handling of air cargo, enabling businesses to consolidate shipments locally before transporting them to Shenzhen Airport for global distribution. The warehouse aims to reduce logistics costs and improve turnaround times for foreign trade enterprises in the Jianghai area, enhancing the overall business environment and fostering growth in the region.

Guangzhou, China

🔹Nansha Port Achieves 20 Million Container Milestone, Strengthening Its Role as a Key International Shipping Hub

Nansha Port in Guangzhou has reached a significant milestone by handling 20 million standard containers this year, solidifying its status as a major international shipping hub. This achievement enhances the port's capacity to support national strategies and regional economic development. The port has also seen a notable increase in foreign trade containers, surpassing 10 million for the first time, while maintaining strong domestic links. With ongoing infrastructure developments and the launch of numerous shipping routes, Nansha Port continues to play a crucial role in enhancing logistics efficiency for local businesses and international trade.

Shanghai, China

🔹Shanghai Port sees annual container throughput exceed 50 million TEU

Shanghai Port has become the first port in the world to exceed an annual container throughput of 50 million twenty-foot equivalent units (TEUs), maintaining its position as the global leader for 14 consecutive years. This growth reflects China's strong industrial and manufacturing capabilities, driving both export-heavy and international transfer containers. With nearly 350 international routes and advanced terminal operations, Shanghai Port is enhancing its role as a global logistics hub, aiming to become a "green energy fueling center" in the future.

Tianjin, China

🔹Airbus builds strong supply chain in Tianjin China

Tianjin Port is enhancing its role as a key strategic hub for connecting domestic and international trade in northern China, aiming for an annual increase of over 1 million containers. Despite challenges, including disruptions from the Red Sea crisis that reduced container capacity between Asia and Europe, the port has successfully opened new routes, such as a direct line from Chile, which has significantly lowered logistics costs. By expanding international shipping services and improving operational efficiency, Tianjin Port aims to meet its growth targets and has already surpassed 1 million additional containers this year, achieving over 5% growth.

Qingdao, China

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Vietnam

🔹Vietnam's Aviation Industry Sees Recovery and Growth Amidst Falling Fuel Prices

Vietnam's aviation industry is recovering and poised for growth, driven by falling fuel prices and increasing travel demand. The decline in jet fuel costs has eased financial pressures on airlines, allowing for competitive ticket pricing and stimulating tourism. Analysts predict significant increases in passenger and cargo volumes, especially during the 2025 Lunar New Year. However, the sector faces challenges with infrastructure, as major airports are operating beyond capacity. In response, the government is expediting infrastructure upgrades, including new terminals and the Long Thanh International Airport project. Airlines are also expanding their fleets to meet rising demand, resulting in strong financial performances across the industry.

South Korea

🔹T’way aims to expand its cargo operations in anticipation of the upcoming launch of the KAL-Asiana mega low-cost carrier

T’way Air is focusing on expanding its air freight business in response to increased competition from Korean Air's acquisition of Asiana Airlines. Following the $1.3 billion purchase, T’way has shifted to direct sales for cargo and plans to enhance its capacity with new aircraft, including two B777-300ERs and one A330-200, expected to increase its belly cargo space significantly. The airline has seen a surge in its cargo business since the pandemic, reporting a turnover of KRW 22.4 billion ($17.3 million) in 2023, more than tripling from 2021, and anticipates further growth with the addition of European routes.

America

🔹Surge in Container Volumes at Ports of Los Angeles and Long Beach Amid Tariff Concerns

The Port of Los Angeles and the Port of Long Beach reported significant increases in container volumes for November, with the former processing 884,315 TEUs (up 16% year-over-year) and the latter moving 884,154 TEUs (up 20.9%). Together, these ports handle about 40% of U.S. imports and are concerned about potential new tariffs under Donald Trump's second term, which could negatively impact cargo volumes. Despite the strong demand driven by retailers preparing for the holidays, port officials emphasize the uncertainty surrounding tariffs and geopolitical issues that could affect future shipping trends.

Bangladesh

🔹Bangladesh 'forcing' importers to source goods from Pakistan amidst tensions with India

Importers in Bangladesh are being encouraged by the government to source goods from Pakistan, signaling improved trade relations between the two countries. A recent cargo ship from Pakistan delivered essential industrial materials to Chittagong port, marking the second such shipment since Bangladesh's independence in 1971. This development follows a meeting between Bangladesh's interim government leader, Professor Muhammad Yunus, and Pakistani Prime Minister Shehbaz Sharif, where both agreed to strengthen bilateral ties through increased trade. Meanwhile, trade with India has declined since the government transition, with some officials suggesting a review of the existing India-Bangladesh shipping agreement.

Myanmar

🔹Myanmar Sees Slight Decrease in Opium Production Amidst Ongoing Instability

Experts from the United Nations reported a slight decline in opium production in Myanmar, the world's largest source of the drug, with cultivation areas decreasing by 4% to 45,200 hectares and production dropping by 8% to 995 metric tons. This follows three years of growth, largely driven by the instability following the military coup in February 2021. Despite the recent decrease, the UN warns of strong prospects for the future expansion of the opium trade, especially as Myanmar has surpassed Afghanistan as the leading opium producer due to a significant reduction in Afghan cultivation.

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